Receiving a notice that your auto insurance policy won’t be renewed can be stressful and confusing. While it might seem unexpected, there are often clear reasons behind a non-renewal. At Wilcoxon Insurance Inc. in Sioux Falls, SD, we aim to help you understand why this happens and how you can take steps to reduce the chances of it occurring.
Reasons for Non-Renewal of Auto Insurance Policies
A common reason for non-renewal is a history of multiple claims or accidents. If you’ve filed several claims within a short period or been involved in at-fault accidents, insurers may view you as a higher risk. Serious traffic violations, such as DUIs or reckless driving charges, can also raise red flags for insurance companies.
Another factor could be a significant change in your risk profile. For instance, if you’ve added a high-powered vehicle to your policy or moved to an area with higher accident rates, your insurer might reassess whether they want to continue coverage.
Reducing Your Risk
Maintaining a clean driving record is one of the best ways to avoid non-renewal. Drive responsibly, avoid distractions, and adhere to traffic laws. If you’ve had accidents or claims in the past, take steps to show that you’re working towards becoming a safer driver. Additionally, paying your premiums on time and maintaining consistent communication with your insurer can help build trust.
At Wilcoxon Insurance Inc. in Sioux Falls, SD, we’re here to help you navigate your insurance needs. If you’re concerned about your policy or need advice, contact us today—we’ll work with you to find the right solutions for your situation.
